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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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We are considering selling a second home. Capital gains will

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We are considering selling a second home. Capital gains will be approx $100,000. We do not plan to reinvest in another home. It is my understanding that the tax on the gain would be 15% if sold before 1 January 2011 but after that date the tax would increase to around 40% because Congress and The President is letting the Bush tax cut expire on January 1. Can you confirm this?
Submitted: 7 years ago.
Category: Tax
Expert:  jgordosea replied 7 years ago.



You are correct that the long term capital gain rate is currently 15%.


As the law stands the long term capital gain rate in 2011 will revert to the 2001 rules of 20%.


See for charts.


Of course, no one can be sure what may or may not happen between now and the end of the year in Congress.


So, as the law stands, it is 15% in 2010 and 20% in 2011 for long term capital gain.


Thank you.

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